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School Property Tax Shift Introduced

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With a little over two weeks until the start of the 2017-18 fiscal year and the start of the school fiscal year for most of the school districts in the state (except Philadelphia, Pittsburgh, and Scranton) school boards are finalizing their property tax rates.  some news coverage has been focused on preliminary approvals and we will have a comprehensive look at the rates in Allegheny County and likely neighboring Washington County, where school districts have to adjust millage rates due to the property reassessment.

Last week those hoping to see school property taxes eliminated and replaced with higher taxes on personal income and sales got a boost with the introduction of legislation aimed at making the shift happen.  The Property Tax Independence Act, as it is titled by its co-sponsorship memo, was referred to committee in the Senate last Tuesday.  Those less than thrilled to the proposal come back, which would include several school districts in the state that held forums on the proposal earlier this year, will no doubt be getting prepared for debate much like proponents.

The proposal would return state dollars to school districts dollar for dollar to replace real estate revenue, which would be eliminated save for any portion used to retire debt of the district.  The problem is that wealthier districts raising a lot of money locally would get back far more than those getting more from the state.

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Allegheny Institute
Allegheny Institute

The Allegheny Institute is a non-profit research and education organization. Our mission is to defend the interests of taxpayers, citizens and businesses against an increasingly burdensome and intrusive government.

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